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Cubic Awarded $92 Million to Develop Advanced Ground Combat Training System for the Canadian Army


SAN DIEGO, Mar 4, 2003 (BUSINESS WIRE) -- Cubic Defense Applications, the
defense segment of Cubic Corp. (AMEX: CUB), has received a $92 million contract
to develop an instrumented land-based combat training system for the Canadian
Armed Forces.

The Weapons Effects Simulation (WES) system will allow soldiers to
"train-as-they fight" -- up to the Battle Group level -- during live
force-on-force exercises.

The contract includes the development and installation of training equipment and
facilities over a three-year period. It will be followed by 10 years of
logistics and maintenance support provided by SNC-Lavalin Defence Programs,
Cubic`s Canadian partner.

Under the initial contract, Cubic will provide a fully integrated Direct-Fire
Weapons Effects Simulation (DFWES) system. Key components include the company`s
new Precision Combat Training System; advanced software-based exercise control
and after-action review technology; Cubic`s Multiple Integrated Laser Engagement
System (MILES 2000); and components from Oscmar International Ltd., a subsidiary
of Cubic Corp.

"This is obviously a huge win for us," said Gerald Dinkel, president and CEO of
Cubic Defense Applications (CDA). "It confirms our leadership in live combat
training and will result in Canada having one of the world`s most advanced
systems of its kind."

Cubic and SNC-Lavalin Defense Programs will install the WES equipment at Army
training sites at Wainwright Alberta and Gagetown New Brunswick.

"WES provides the most realistic training possible to meet collective training
objectives for soldiers, leaders, commanders and staff," said Steve Fitzgerald,
WES capture team manager for CDA. "The family of DFWES products provide enhanced
fidelity -- truly replicating the actual characteristics and performance of the
soldiers` weapons in realistic combat environments."

At the heart of WES is an instrumentation system that provides a realistic
combat environment, tracks participants and vehicle movements in near real-time,
and records the information for playback during after-action reviews. The system
software functionality is provided by a component called the PC-Range
Instrumentation System, or PC-RIS.

The instrumentation system works in conjunction with the DFWES products that are
mounted on vehicles or worn by the soldiers in the field. The primary DFWES
products include Cubic`s MILES 2000, Oscmar`s DWFES components, and Cubic`s new
Precision Combat Training System (PCTS). Both systems feature eye-safe laser
engagement capabilities, realistic audio/visual effects and casualties
identified as a "hit," "miss" or "kill."

The PCTS is a dual-simulation system, mounted on armored fighting vehicles, that
supports both precision gunnery and tactical training requirements. For the WES
program, PCTS will be installed on a family of vehicles and weapons systems for
high-fidelity tactical exercises.

"PCTS provides the highest level of training fidelity possible for the Canadian
Army`s main battle tanks and armed fighting vehicles," said Fitzgerald.

He noted that the system is also being offered to several additional
international customers.

MILES 2000, worn by the soldiers and mounted on vehicles, allows troops to fire
infrared "bullets" from the same weapons and vehicles that they would use in
actual combat. For the WES program, Cubic will outfit 2,800 players with DFWES
components.

The Cubic Defense Applications group, one of Cubic`s two major segments,
provides realistic combat training systems for military forces as well
simulation, force modernization, educational services, operations & maintenance
and manufacturing services. The group also supplies products and systems for
C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance &
Reconnaissance) applications, search and rescue avionics and radio
communications for military and civil markets. The corporation`s other major
segment, Cubic Transportation Systems, designs and manufactures automatic fare
collection systems for public mass transit authorities. For more information
about Cubic, see the company`s Web site at www.cubic.com.
 
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